Amidst the news of one of the early investors Kalaari Capital planning to sell its Snapdeal stake in entirety or partially, Snapdeal has struck a new deal with as many as twelve banks and a bunch of digital wallets to offer discounts of worth up to Rs. 100 crore in the next twelve months.
A big gun from the past, Snapdeal has evolved over the years. Once touted to be a straight rival to India’s largest e-commerce player Flipkart, now it’s just a company with a meagre market share in the Indian e-commerce space. After its debacle last year, the company saved itself from being sold to Flipkart and was relaunched as Snapdeal 2.0 in mid-2017.
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Digital Payment & Digital Wallet Offers
In a bid to bring in more customers, Snapdeal has partnered with multiple banks to offer straight discounts on digital payments through debit and credit cards and digital wallets for all the online purchases over the period of next 12 months. As per the sources, users will get discounts up to Rs. 100 crores in the form of cashbacks and instant discounts. The buyback and discounts will range up to 25 percent of the purchase, the e-commerce company said.
Snapdeal has tied up with financial services provider VISA to offer discounts of up to Rs.100 crores to all the Snapdeal users who will make purchases online over the next 12 months, starting April 2018.
Snapdeal has tied up with twelve banks which include;
- HDFC Bank
- ICICI Bank
- State Bank of India
- Citibank
- American Express
- Axis Bank
- HSBC
- Kotak Mahindra Bank
- Yes Bank
- Standard Chartered Bank
- IndusInd Bank
- Federal Bank
The e-commerce platform has also tied up with two digital wallets – FreeCharge (which is owned by Axis Bank now) and Mobikwik. Users can take advantage of some great deals if they opt to pay online for their purchases on Snapdeal using credit/debit cards or wallets.
Snapdeal Instant Discounts & EMI Offers
Apart from the bank offers, Snapdeal has tied up with VISA to let the Visa cardholders of all the banks benefit from the new Snapdeal offers.
Snapdeal users with Visa cards can get instant discounts by using a unique shopping code every time they make a purchase. Additionally, the wallet discounts will run throughout the year until March 2019.
Snapdeal also has their own Signature Snapdeal Debit and Credit Cards in association with a few banks. Users can pay for their orders online by using a credit or debit cards, EMI or any of the participating digital wallets to get cashbacks or an instant discount of up to 25 percent depending upon the offers at that point of time. The offers will vary throughout the year, and Snapdeal is expecting up to a million transactions each month.
Snapdeal’s Future Plans
It does not stop at this. The e-commerce company will soon tie up with other financial partners to offer more discounts and cashbacks. Up next, Snapdeal is planning to partner with at least fifteen banking and multiple fintech companies in the next financial year.
The Snapdeal HDFC Bank credit card was recently revamped, and the now has over 1.50 lakh users in the country. In January 2018, the co-branded credit cards have crossed spends over Rs. 100 crore.
The Snapdeal HDFC Bank credit card offers 5% instant discount for Snapdeal customers with 10X rewards each time when they make a purchase.
Digital Wallets & Its Growing Demand
Moving from cards and internet banking, digital wallet payments have seen a multi-fold growth in the last couple of years. From international giants launching their own payments solutions in India to government’s push towards a cashless economy, the rise of digital payments is at an all-time high.
Recently Paytm also registered a $20 billion (1.3 lakh crore) total transaction last month in February, where the transactions have grown over four-fold from last year. Though the digital wallets are currently in a fix with the latest KYC issue, it is just a temporary procedural setback. Digital payments are expected to only grow in the coming years.